Political Finance Rules

Rachel Blake Excerpts

Thursday 6th March 2025 Commons Chamber

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

Last week gave me two really clear reminders about why this issue matters. First, I spoke with my hon. Friend the Member for Kensington and Bayswater (Joe Powell) at a rally to mark the illegal invasion of Ukraine. We saw a frank reminder of authoritarianism right on our doorstep. Then, on Thursday, the Labour party lost a by-election in Vincent Square. While I do not like that result one bit, I am very proud to live in a country where a community can come together and make a decision about who represents them. We currently see more of that sort of politics in this country, with people able to go out to the polling station, but sadly we are at real risk of seeing it decline.

We cannot ignore the fact that there are forces intent on weakening our voice, our vote and our rights in the media, in business and in politics, and that they are co-ordinating to replace democratically elected regimes with those that would do their bidding. These forces are spreading conspiracy theories, which have driven division and violence in our communities. They give a platform to those who would question fundamental British values, and they undermine the democratic process as they question free and fair elections around the world. This is not a question of competition within our democracy, but of democracy itself. We need to preserve a system where the voters are the ones choosing their leaders, not billionaire autocrats. Keeping their money out of our politics is becoming a difficult task. Our finance flows are becoming more elusive, with cryptocurrency enabling money laundering at scale, and our politics has a growing demand for more cash, with ever-growing competition for voters� attention. What Member has not had to struggle with an inscrutable Ring doorbell or security gates? Understandable changes to home security and design have real impacts on our political finance, as we spend more and more money trying to reach voters through online ads and direct mail.

However, getting this money out of our politics is more important than ever at a time when trust in politics is at an all-time low. Politicians must be effective natural communicators as well as thoughtful legislators, and even the suspicion that we might not be acting in our constituents� interests will further erode the trust that voters do have in their representatives. Fixing political finance is, therefore, an essential part of restoring faith in democracy. We have already heard that a tenth of the money in our politics comes from unknown or questionable sources and is donated through loopholes in existing law. Now, we have to come to the solutions.

Enforcement is made more difficult by loopholes and a weak enforcement system: Companies House reporting rules are too loose, while the Electoral Commission lacks the independence to investigate potential breaches swiftly and thoroughly. Reporting obligations for parties, elected officials and candidates require tightening up, as they allow some individual candidates to accept money without reporting. Meanwhile, the disincentives for bad behaviour, such as fines, are set well below the level that would impact bad actors.

We need to close the loopholes around unincorporated associations, open up political parties to greater transparency and give more power to enforcement entities. We cannot take for granted that voters will always be able to speak truth to power, and we need to fight to preserve a system where British elections are decided only by British voters. The forces of foreign interference are knocking at our door, and we need our Ring doorbell more than ever.